Pecca Group Bhd (5271)

• PECCA closed 6.5% or 7 sen higher to RM1.14 yesterday.

• Share price has broken key moving averages recently on the back of higher trading volume indicating strong buying momentum.

• In addition, its recent venture into personal protective equipment (PPE) production and record sales from Perodua, could see renewed buying interest as the stock remains a laggard amongst the PPE theme play. As such, we expect share price to move higher, likely towards RM1.30 level.

• From here, resistance levels are expected at RM1.25 (R1) and RM1.40 (R2).

• On the contrary, support levels are seen at RM0.99 (S1) and RM0.91 (S2).

Source: Rakuten Research - 7 Aug 2020